Life After Parents: Planning for your minor children

Every parent has thought about it, but few want to discuss it.  What happens to your children if you and your spouse both pass away before your children grow up.  Who will care for them?  Who will cover the costs of raising them? How will they go to college?  Who will control their inheritance?  These are very tough questions, but they must be answered.
A proper estate plan can account for this worst case scenario.  A guardian can be named to care for your children and a back up guardian can be chosen in case the first choice is unable or unwilling to serve.  A revocable trust can be set up that dictates the terms under which money shall be disbursed, first to the guardian and later to your children.  The Trustee should be someone that you trust to work with your children’s guardian, but also protect your children’s financial future.  Life insurance can be purchased and the alternative named beneficiary can be your revocable trust. Terms of the trust can also include information about college attendance, military service, or other career paths.
Additionally, a proper estate plan can account for the protection of any assets that you wish to pass along to your children.  Rather than giving your grandmother’s ring to your son upon your death, you can dictate that the ring goes to him upon his 25th birthday, or upon him getting engaged.  Rather than your vacation cottage going to your children when you die, your trustee can rent or otherwise leverage the cottage for income until your children are old enough to be trusted with the asset.
Every estate plan is different because no two parents want to raise their children the same way.  However, the most important thing to remember is that with proper planning, even life’s worst case scenario cannot stop you from protecting your children and making a positive influence on their future.